Supermarket Income REIT has agreed a £45m (€52m) deal to buy a 90,000sqft supermarket in the East Midlands region of England.

The UK supermarket real estate investor said it has acquired the nine-acre Tesco Extra supermarket in Mansfield, Nottinghamshire, from the Charities Property Fund (CPF).

The asset is being acquired with an unexpired lease term of 20 years.

Supermarket Income said it will pay £33.7m in cash, funded from the proceeds of the £45m equity placing on 22 March, and the issue to CPF of 10.9m new shares in the company at a price of 103 pence a share.

Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT, said: “This acquisition increases both the average unexpired lease term and the net initial yield of our portfolio. We are especially pleased to have been able to use Supermarket Income REIT shares as part consideration in a property acquisition for the first time.

”We believe there are many investors who own individual supermarket properties that would benefit from swapping their ownership into shares in Supermarket Income REIT, gaining our diversification and specialist management.”